Menu
​Insider trading charges - EROAD suspends employee

​Insider trading charges - EROAD suspends employee

Charges relate to alleged communications and share trading in 2015.

Transport technology provider, EROAD, has suspended an employee after regulator the Financial Markets Authority filed charges relating to insider trading.

The FMA has also filed charges alleging breaches of insider trading prohibitions against a former EROAD employee.

EROAD, which said the employee was not a member of the senior executive team, said it is also considering civil claims against both individuals for breach of confidence.

Chairman Michael Bushby said the company's conduct is not the subject of investigation.

The charges relate to actions allegedly taken by two individuals in September 2015. The FMA alleges that the former employee traded 15,000 EROAD shares in this period.

FMA alleges the current EROAD employee sent text messages to the former employee containing confidential material information relating to the organisation’s performance.

Bushby said the suspension and possibility of civil claims were part of a response to what appeared to be a serious breach of confidentiality, terms of employment, and the company’s code of ethics.

Bushby said that the company was disappointed to learn about the alleged actions that led to the FMA’s proceedings.

“We regard our values, ethics and integrity as a company as critically important and we strive to maintain the highest standards,” Bushby said.

Bushby added that EROAD was confident no data about staff, suppliers, customers or stakeholders had been compromised.

“The information relating to this matter concerns EROAD historic financial information allegedly used for personal share trading,” he said.

FMA General Counsel, Nick Kynoch, said the integrity of New Zealand capital markets is a strategic priority for the FMA.

“Trading misconduct, such as insider trading, negatively impacts the integrity and reputation of our markets, and the confidence of people investing in them," he added.

EROAD develops vehicle fleet tracking technologies.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Tech industry comes out in force as Lancom turns 30

Tech industry comes out in force as Lancom turns 30

A host of leading vendors and customers came together to celebrate the birthday of Lancom Technology in New Zealand, as the technology provider turned 30.

Tech industry comes out in force as Lancom turns 30
The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Show Comments